The U.S. Department of Defense (DoD) has recently issued an interim rule that proposes to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to limit, with some exceptions, the acquisition of personal protective equipment (PPE) and certain other products from non-allied foreign nations, including the Democratic People’s Republic of North Korea, the People’s Republic of … Continue Reading
As part of an anti-corruption campaign targeting the healthcare sector, the Chinese authorities’ latest measures seek to prohibit the improper collection of prescription and usage data by healthcare professionals (HCPs) and employees of healthcare companies. The regulations cover prescription and usage data in relation to pharmaceutical products, medical devices and medical consumables. Our Asia-Pacific regulatory … Continue Reading
On October 26, 2018, China enacted the International Criminal Judicial Assistance Law. This law imposes additional procedures relating to the provision of judicial assistance in criminal matters between China and other countries. Our Asia Investigations team considers the key provisions of the law, its potential impact on internal investigations by foreign companies operating in China, … Continue Reading
The first half of 2018 saw a number of significant changes to the Chinese anti-corruption regime, including amendments to the Anti-Unfair Competition Law and formation of new anti-corruption regulatory bodies. Amidst an anti-corruption campaign in China that continues to gain traction, companies operating in the country should continually evaluate whether current business models run afoul … Continue Reading
In an Order of Settlement released February 6, 2015, the SEC agreed to stay the administrative action against the Chinese affiliates of the “Big Four” accounting firms for refusing to turn over their audit work papers relating to several U.S.-listed Chinese companies. As we wrote earlier here, the Chinese affiliates of the audit firms had … Continue Reading
More than a year ago, we began following the so-called Ernst & Young (“EY”) State Secrets Case in Hong Kong. On 23 May 2014, the High Court of Hong Kong finally concluded that there was no “reasonable excuse” for EY’s failure to comply with Securities and Futures Commission (“SFC”) notices seeking information and documents, and … Continue Reading
The Securities and Exchange Commission recently indicated that it would review, de novo, the January 2014 decision barring the Chinese affiliates of the “Big Four” accounting firms from appearing before the SEC. The Commission’s Order, found here, also granted both parties’ motions to submit additional evidence for consideration – most significantly, the auditors’ evidence that … Continue Reading
New enforcement actions and media allegations have been brought in China’s ongoing regulatory crackdown on the life sciences industry. Reed Smith continues to monitor these developments and has prepared this update on the pharmaceutical and device sectors. For a detailed summary regarding recent developments, click here. … Continue Reading
This post was also written by Crystal Xu. China has been undergoing a significant regulatory crackdown on its life sciences industry over the past several months, primarily in the pharmaceutical and infant formula sectors. The focus of these enforcement actions may now have spread to the medical device sector. On August 15, 2013, the local … Continue Reading
The Securities and Exchange Commission’s (“SEC”) power to obtain documents from U.S. companies and their auditors is a key component of its mandate to protect the marketplace from fraud. But what happens when the exercise of that power conflicts with the civil and criminal laws of another country? In the case of the SEC seeking … Continue Reading
This post was also written by Terence Healy. On April 8, 2013, District Judge Shira Scheindlin (S.D.N.Y.) dismissed Deloitte Touche Tohmatsu CPA Ltd. (“Deloitte”) from a securities fraud class action brought by investors in Longtop Financial Technologies, Ltd. (“Longtop”), a Chinese company which was delisted from the NYSE in 2011. The plaintiffs alleged auditing giant Deloitte … Continue Reading
This post was also written by Terence Healy. Yesterday, the SEC instituted administrative proceedings against the Chinese affiliates of the “Big Four” accounting firms and BDO related to audits they conducted at nine Chinese companies. At issue is the accounting firms’ “willful refusal” to provide audit work papers and other materials the Commission seeks in its … Continue Reading
Defining “insider trading” is already difficult enough, especially across different jurisdictions where elements and defenses can vary ever so slightly, and yet can result in very big differences. But try translating the term to your Chinese-speaking client. The most commonly used translation for insider trading is “內幕交易” (nèimùjiāoyì) – which literally means “trading behind the … Continue Reading
On March 13, 2012, the Senate (by voice vote) unanimously passed an amendment to the $109 billion Senate Transportation bill designed to strengthen “Buy America” preferences. The legislation, introduced by Sens. Sherrod Brown (D-Ohio) and Jeff Merkley (D-Ore.), improves transparency and reporting of proposed “Buy America” waivers by requiring the Department of Transportation to provide … Continue Reading